When working with large amounts of sensitive files, due diligence is vital for all parties. Due diligence files are traditionally kept in cabinets that are only accessible to those with physical access. This method isn’t suitable for dealing with large amounts of data or multiple transactions. A virtual data room (VDR) allows multiple interested parties to review and comment on sensitive documents, without making copies which might expose confidential information. A VDR is often used to conduct due diligence in M&A transactions, litigations, bankruptcy, fundraising and audits.

To make it easier for the due diligence process, a VDR has a file structure that is easy to navigate and organizes files according to their type or project stage. The structure of https://dataroom3d.com/intralinks-virtual-data-room-review/ the folder can be adapted to suit the needs of specific industries and projects. The software comes with a default index of files that reflects an due diligence checklist. This helps users find the documents they need faster.

The VDR should be equipped with all the security features that are required to ensure that nobody has access to sensitive data without permission. This includes encryption of 256 bits, remote shredding, dynamic watermarks restricted viewing mode, secure spreadsheet view, in-depth activity reports and antivirus protection. It should also allow you to limit the download and print documents as well as restrict the amount of time users can spend watching a screen or document. Different providers offer different security features, so you should compare their capabilities before settling on a provider.